Hire to Pay Workflow

The Hire to Pay cross-module workflow connects talent acquisition, personnel contracting, time tracking, and statutory payroll into an automated, auditable chain compliant with Ethiopian labor and tax laws.

End-to-End Workflow Architecture#

+--------------------------------------------------------------------------+
|                         HIRE TO PAY WORKFLOW MAP                         |
+--------------------------------------------------------------------------+
| [Phase 1: Onboarding & Contract Establishment]                           |
|  - Create hr.employee profile (TIN, POESSA Pension No, Bank Account)    |
|  - Create hr.contract with Hay Pay Grade (G1-G16, Step A-D)              |
+--------------------------------------------------------------------------+
                                    |
                                    v
| [Phase 2: Attendance & Leave Synchronization]                            |
|  - Biometric punches sync from turnstiles to hr.attendance               |
|  - Ethiopian Calendar (smart.et.calendar) maps public holidays           |
|  - Overtime calculated (1.5x, 1.75x, 2.0x, 2.5x multipliers)            |
+--------------------------------------------------------------------------+
                                    |
                                    v
| [Phase 3: Monthly Payroll Computation]                                   |
|  - Batch execution in hr.payslip.run                                     |
|  - Proclamation 1395/2025 progressive tax slabs (0-35%) computed        |
|  - POESSA Pension split: 7% Employee / 11% Employer                     |
+--------------------------------------------------------------------------+
                                    |
                                    v
| [Phase 4: Multi-Tier Approval & Financial Posting]                       |
|  - HR Manager -> Financial Controller -> CFO signoff                    |
|  - Auto-posts General Ledger Journal Entry (Debit: Expense, Credit: Bank)|
|  - Exports CBE / Awash bulk bank transfer file                           |
+--------------------------------------------------------------------------+

Detailed Operational Steps#

Step 1: Onboarding & Contract Creation#

1. Open Employees -> Employees -> New.
2. Record mandatory identification:
   • Full Legal Name (Amharic & English)
   • Taxpayer Identification Number (TIN)
   • POESSA Social Security Pension Number
   • Bank Account Details (Commercial Bank of Ethiopia or Awash Bank)
3. Navigate to Contracts -> New:
   • Assign the compensation grade (hr.grade, e.g., Grade 9, Step B).
   • Configure non-taxable transport allowances in accordance with Ministry of Finance Directive 1/2011.

Step 2: Biometric Punch Synchronization#

1. Corporate hardware turnstiles log employee badge check-ins.
2. A background cron job synchronizes punch logs into hr.attendance every 15 minutes.
3. The engine flags late arrivals, unexcused absences, and overtime hours worked during nights, weekends, or statutory holidays.

Step 3: Batch Payroll Execution#

1. Navigate to Payroll -> Payslips -> Batches.
2. Click Generate Batch for the current payroll cycle (e.g., Tikimt 2017).
3. The payroll engine evaluates all active salary rules:
   • GROSS: $\text{Basic Salary} + \text{Taxable Allowances} + \text{Overtime}$
   • PENSION_EE: $\text{Basic Salary} \times 7\%$
   • PENSION_ER: $\text{Basic Salary} \times 11\%$
   • PAYE: Progressive tax schedule applied to $\text{Taxable Income} = \text{Gross} - \text{Exemptions}$
   • NET: $\text{Gross} - (\text{PAYE} + \text{Pension EE} + \text{Voluntary Deductions})$

Step 4: General Ledger Posting & Settlement#

1. Financial Controller reviews the draft payroll batch summary.
2. Upon approval, click Post Journal Entries. SmartERP generates balanced debits and credits:
   • Debit: Salaries & Wages Expense (611000)
   • Debit: Employer Pension Expense (611200)
   • Credit: Net Salaries Payable (212100)
   • Credit: PAYE Withholding Tax Payable (213100)
   • Credit: POESSA Pension Payable (213300)
3. Finance exports the bulk bank settlement file directly to CBE Birr or electronic banking platforms.